A bad investment in Arcadia

Address: 18 Fano St. #6, Arcadia, CA
Bedrooms: 3
Bathrooms: 2.5
Size: 1,801 sq. ft.

Arcadia is an upscale neighborhood that boasts highly ranked schools. But the prestige of the zipcode does not necessarily mean that every property there is a good buy. Arcadia, like some other affluent, well established neighborhoods in Los Angeles county, remain overpriced relative to historical norms. This property on 18 Fano St. was sold for $558,000 at the peak of the housing bubble in 2005, yet it is currently listed for $579,000. Many of the "lesser" neighborhoods in LA and OC have come down roughly 40% from the 2005/2006 peak.

This is a fairly new property that probably won't require as many big ticket repairs as those that are 50 years old, but that does not hide the fact that the numbers just don't add up.

Listing price: $579,000

Down payment (20%): $115,800

Expected monthly rental income (based on Zillow.com rent estimate): $2540

Monthly mortgage (30 year fixed @ 3.875%): $2211

Monthly maintenance and repair budget: $100

Monthly vacancy budget: $100

Monthly HOA dues: $150

Monthly property tax: $651.38

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Monthly loss: $672.38